warner and cbs as people wait to see how that one will be resolved. looking forward to the sports. of course, showtime. that's the closing bell down here at the new york stock exchange. [ closing bell sounding ] being rung. that's the nasdaq, as well, where we're looking potentially for a positive close despite the other two indexes starting off the week to the downside. and it's 4:00 p.m. on wall street. welcome to the "closing bell." i'm kelly evans along with scott wapner. maria bartiromo will be back tomorrow. here's how we're finishing the day on wall street. the dow jones industrials average losing ground by about 46 points. the s&p 500 closing down 2 1/2, although it's managed to stay above the 1,700 level for the third day in a row and nasdaq helped by apple. starting the week in the red. joining us for more, we begin with the market panel, paul from heritage capital, doug from riverfront investment group, kenny from o'neil securities,

who's just finishing up trading and will join us shortly. guys, welcome. paul, let's kick off with you. we're looking at the start -- negative start, down about 46 points in the dow. how worried are you? >> i'm not worried. i mean, listen, the market's had a great run. last week, a great run since june 24th. even if you went down 1%, 2%, 3%, i think it's just a tiny little dip. it's barely a rounding error. and the markets, to me, are clearly headed higher in the short term. >> doug, you buying into this weakness, as well? >> yeah, i think we are buying into this weakness. we also are finding that the u.s. has had a really great run, and, you know, the whole point of making your most money when reality and expectations are in disalignment, that's not the case right now in the u.s. things are good and people recognize that. i think the real opportunities are is overseas where expectations are very low and those countries are maybe where

the u.s. was a couple of years ago. we're looking at second half that could be a lot like the second half of 2012, which is the u.s. kind of stalls out and the international markets really get up and going. >> that's interesting point. >> -- under way. >> let's bring in david as well from sierra. you guys seeing more opportunity given the valuation here, even though we're a little softer today? are you seeing more opportunity potentially in some of the sold-off european and emerging markets? >> yes, we think emerging markets have a good chance of outperforming the u.s. over, say, the next 18 months. but right now, i think the focus should be on the bond market, because that could be a headwind here. >> and explain what you mean by that. if rates move higher or because of the volatility that we've seen, or the way in which it would make people behave? >> well, rates have moved higher starting in early may. and the fed has been jawboning since their june 19th statement, which sent the bond yield up rather erratically. and it hasn't really been effective. so we're looking at 1% higher rates for municipals that are

refinancing, for corporates that are refinancing, and even for treasury debt. and that's a heavy burden unless it can be reversed. >> i want to bring in kenny in to this discussion now, joining us from the floor. kenny, you've heard here some concern about what's happening in the bond market. but, you know, you have to say for all of the volatility we've seen and the focus on it, stocks have pretty much shrugged this one off. >> they have shrugged it off. today was a low news day. low volume. not a whole lot of data. the ism number came in stronger than expected, but that made sense based on kind of the jobs we've seen and having been created. we see the market holding just above the 1,698 level, which is key. as long as it holds there and trades above, we're still in kind of that moving-ahead phase, right? what you have to watch for, if it backs off and pierces 1,698, then you get more soling pressure. a market down 40, 50 points i don't consider being down, considering the move we've had. it's more of a churn as the market digests this most recent move.

and then tries to assess and waits for what's coming at the end of august, whether it's jackson hole, whether it's the chatter about bernanke's replacement, whether it's the tapering, you know, conversation, which, by the way, remember, is on september 17th and 18th. the german elections are on september 22nd. are we really sure that the fed and the u.s. government wants to talk about tapering right ahead of those german's elections and potentially cause global volatility in the marks like we saw a month ago when it happened? >> it's a fair point. doug sandler, you mentioned some of the opportunities we might be seeing overseas. a lot of people have been saying, why shouldn't we wait until after the elections in germany, after september 22nd? >> well, i think that's -- you know, i think that is when something happens. you know, in the end, these markets, we look at the international markets as being roughly about 30% cheap. u.s. is somewhere between 5% and 10% cheap. so the question is, you know, do you feel like the markets aren't going to move? i mean, people are going to start to recognize who will win the election before the election's decided. where do you want to be ahead of that?

and our view is we want to be at least neutral to the international markets, and for a global investor, that's probably somewhat like a 40%, 50% allocation to international. >> paul, if i -- >> money is always treated best where it's -- >> go ahead, sorry. >> i said money flows where it's treated best. europe has not been the place for years. maybe it's next year. the u.s. market's the strongest in the world. the dollar is strong. maybe after the next pullback, the dollar takes off again. i think it's a longer-term story than a couple of weeks, a couple of months. the money will flow to our shores for the next couple of years. >> the market's certainly pressing it like it's a long way off. all things being equal, i love to put my money in a market that's rewarding me currently. you know, in the end, if you're paying two, three times for more that market than you are for the other one, you have to make a balance. >> paul, i wanted to ask, if we had 5% or 10% left in this trading range, in this market, would that be worth it for people to get exposure here? i mean, it's -- look, this is a

psychological barrier. we're near all-time highs on these indexes. >> and the funny thing is, the only high that really matters, to be worried about, is the final high. you never know when the final high is. let me say this. if you're nimble enough, you know, consumer discretionary has been working. the banks have been working. i don't know why people push against that. the banks are the most hated group. they've been that way for six years now. yes, you can certainly play the last 5%, 10%. i don't think we're in the last 5% for sure. at some point, you'll get a pullback. let ease say it's 10% or 15%. it won't be the final high. the final high should be in 14 or after. >> all right. >> i would agree. >> thank you very much for sharing your views. we have to leave it there and get over to scott wapner who has breaking news on david tipper in. over to you. >> all right. thank you very much. i got off the phone with him over at appaloosa, out with a letter today celebrating his 20th anniversary. more specifically, i do have some performance numbers from

how mr. tepper has done in july and also year to date. and they really underscore why he's considered one of the world's greatest investors. certainly one of the best performing hedge fund managers of all time. i'll go through the numbers with you right here. july, he was up 5.5%, net of fees. again, july appaloosa up 5.5% net of fees. but year to date, net, up 23.4%. so he did well in july. he's had a tremendously good year, up 23.4% net. you're looking at, also, his returns over the long term. again, a 20-year return, up 28%. 10-year, up 25%. and how about over the last five years? over the last five years, david tepper at appaloosa returning some 30.5%. we did chat briefly about the market, as well, with david tepper telling me that stocks are still reasonable, in his words, probably still the only

place to be. made it clear that he's still long. maybe not quite as bullish as he was, because of the move we've had, but he made it clear, if i was super bullish before, i'm just bullish now. so clearly, david tepper thinks quite highly of the u.s. stock market at the current time. asked about europe, as well. we've been hearing from a lot of people, whether it was muhammad or other market participants, investors, hedge fund managers, looking for opportunities in europe. i asked david about europe, where he said europe is bottoming. but that does not mean there can't still be problems. so just to underscore what we've learned here today, in the month of july, appaloosa is up 5.5% net, year to date appaloosa is up 23.4%. and again, just to underscore this one fact. if you put $1 million into appaloosa in 1993, again, he's sending out a letter today, to really commemorate his 20 years in running that firm, $1 million

invested in appaloosa in '93 now worth $149 million. that is versus $5.3 million in you simply invested in the s&p. you have steven weiss here with me, obviously a frequent contributor to the "halftime show," full disclosure, knows david tepper well, sometimes golf partner, as well. this is the first time you're learning of these numbers as well. what has made david tepper one of the greatest investors over all of the years, over a long period of time in. >> he's the only investor i know running a hedge fund that can go from any asset class to another asset class and still make money. so he sees the whole world, the global opportunity. he sees every asset class. for example, he started life out as distressed, high-yield investor. two-thirds of his returns now are coming from equities in the past year. so you don't really see that. the other thing is, he is an activist, but he's a quiet activist. you won't see him in headlines.

you won't see him in a fight, like ackman's in right now, it just won't happen. so he gets things done without the ego, without the need for going in the press. but it's just down and dirty, great research, great just due diligence. one more point. steve cohn runs less money than dave now. he peaked about 14 billion, 15 billion. dave's earning about 18 billion. dave, he has 35 people in his organization. steve? he's got 1,000. so we hear about warren buffett being the greatest investor of all time. i think dave tepper's numbers prove he is. 28% net of fees. so that's after he got paid. >> right. >> that's what investors -- >> 36% gross over a 20-year period. as i mentioned, and we'll make this the final point, over the last five years -- >> that's really incredible. >> -- the performance, up 39% gross, 30.5% net of fees. >> if you look at anybody else's performance, they'll give you their five-year numbers, they'll give you the ten-year numbers

and you may see ten-year numbers are okay. the five-year numbers are typically very, very poor. mid single digits generally best case. dave's numbers haven't taken the hit. >> yeah, steve, thanks. steve weiss. let's go over to josh lipton for a "market flash." josh? >> we're watching american eagle outfitters, tanking here in the after hours. the news, aeo announcing it is revising its second quarter eps outlook to about 10 cents. total net revenue decrease, they say, about 2% in the second quarter. consolidated comparable sales down 3w7%. the ceo saying in a statement they are not at all happy with the second quarter results. talks about the disappointing performance primary because of the assortment and weak traffic. you can see the stock down more than 12% right now. guys, back to you. >> all right, josh, thank you so much. the dow and s&p kicking off the new week in the red for a second consecutive week. bob pisani, looking at the stat here that we're sending around, the dow having its worst day in

more than a month. >> yeah. >> and it was only down .3%, bob. that tells you what we've done here. >> yeah. we can't really -- we couldn't get into positive territory at all today. i think mr. fisher had an impact there. take a look at the markets today. the key point, ism services falling on the good ism number we got the other day, that helped early on but never got us into positive territory. richard fisher quote of the day, talking about reducing bond purchases in the fall, said we should gird sour loins to make our first move this fall. here's where we stand on the economic news so far. i call it two out of three ain't bad. ism services, the manufacturing beat, the miss was on nonfarm payrolls, so something is wrong here. because the manufacturing services employment part continued to show expansion. here's the dow industrials, never could get into positive territory. mr. fisher came out about 11:30 with his remarks and the market just drooped down there, even though he didn't say anything he hasn't said before. in terms of sectors, another weak day for energy. you heard the follow-on, exxon, chevron, the numbers last week, still can't get into positive territory, down about 3% for

exxon. last week, the hold builders were weak all throughout the day. fastenal, makes nuts, bolts, industrial parts, came out with numbers below expectations for july. we did have some strength in the healthcare group. once again, the one group weak, like energy, you have another group come in, you get the strong numbers overall. the important thing for today, scott. we had a smooth start for new expanded circuit breaker. this morning, there were new circuit breakers extended to the open. the s.e.c. is now extending the what we call limit-up, limit-down rules, to the open, first 15 minutes excluded, the only exception is the last 15 minutes. guys, back to you. >> that can make the last 15 minutes pretty interesting. thank you very much. july saw record inflows into u.s. equity funds. coming up, we'll tell you where the money is going. and everyone buzzing about the upcoming release of jobs. not the report. but a film about apple's co-founder steve jobs. coming up, we get the inside scoop on how the film was almost never made.

by the way, maria tomorrow will talk to the movie's star, ashton kutcher. might have to hang around for that one. you won't want to police it. we'll be right back. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

well, this weekend's report from trim tabs setting a record

$40.3 billion going into u.s. equity funds in july. that might help explain the market's decent performance last month, but why did it happen, and importantly, will it continue in august? >> yeah. well, with us is matt from etf analytics and our own rick santelli. welcome to you both. rick, you made the point earlier -- and let's just get a debate going right here as to whether these inflows into etfs in part are a contrarian indicator. >> well, you know, i was talking to chuck beaderman, dot-com interview, i urge listeners and viewers to go there today and look at it. he said usually the inflows on an etf perspective in the short run are not auspicious for stocks, meaning they're maybe better in the long run. he went further to point out, if you really break down the disproportionate amount of that 40-plus billion that went into etfs, on the leveraged long etfs, they had inflows for the first time in five weeks. but on the leveraged short etfs they had the least coming in in five weeks. so the best thing to get a good

bull market going is have a lot of shorts in. so there's many different ways to look at this, and the great rotation on the other side of the street, in terms of fixed income, still seems to get more divvied up in the cash and money markets. >> you know, matt, i'm curious, we saw today actually a pretty low-volume day. i think one of the lowest volume days on the year in the exchange and that was the case last month. how can it be at the same time we're seeing low volume on a day-to-day basis and seeing a record high amount or volume of inflows? >> well, there's nothing like high prices to drive investors into all products, including etfs. so i think, you know, we just talked about the dow being down the most in the past month, just 30 basis points. anytime you see that sustained bull trend, you see investors 1 moving in, both into equity and actually into fixed income. we saw net inflows into the fixed income space in the etf market last month as well. >> so what you're telling me -- excuse me, i'm sorry -- there is no great rotation. that if people are hanging on, people dumping it -- dumping the

bond funds and pouring money into stocks, that you're not seeing that? >> well, what we're seeing within bonds is not a great rotation out of bonds, but a great rotation inside bonds. so we see etf investors shortening on duration and buying credits. so we saw, for instance, $1 billion in outflows out of investment grade bond etfs and $1 billion of inflows into high-yield bond etfs. bank loans, anything with short duration and extended credit risk, that's what investors are buying in the bonds space. and in equity, they're buying, you know, s&p 500, russell 2000. we see significant inflows into japan, beginning inflowing into europe, maybe people betting on a recovery there, and also financials, which folks think will benefit from rising rates. so we do see aggressive inflows -- not across the spectrum. there are areas where there are outflows as well. but that's the play we're seeing now. >> so, matt, to make sure i'm following here, what you're saying one of the biggest winners from the fund flows period, regardless of what kind

of asset is -- i'm sorry, regardless of what kind of index they're built off of, are etfs? >> absolutely. and that makes perfect sense right now. this is a macro driven market. this is a qe-driven market. it matters more than the fundamental of individual stocks what's going on in the broad economy. and etfs are the perfect play to make those bets. for instance, in the credit markets, shortening that duration, extending credit. in the equity markets, maybe picking out japan or financials or europe as the next big play. so etfs are the perfect tool for a macro-driven environment. we remain in that kind of environment, and that's why we're seeing them win the battle of flows versus mutual funds and other products. >> yeah, rick? >> yeah, no, i think what matt says makes absolute sense, and i think it jives with the chairman of trim tabs who helps put this together, chuck beaderman, as i mentioned. so let's look around around see what that tells us. in my opinion, it tells me that we are still the cleanest shirt in a dirty hamper, and with

regard to europe, there's so many naysayers now as we get closer to the german elections, as many guests have pointed out today. so for the here and now, i'm not sure that etfs and their inflows are the main reason to see stocks go up, or as chuck thinks, maybe come down. but i think the big story remains that the fixed income investor still doesn't trust the equity markets. >> i don't know, rick, you say there's so many naysayers about europe. i'm hearing from more and more people who say that europe is the place to actually look right now. i just -- you know, as i said earlier, got off the phone with david tepper who said europe's bottomed. yeah, there can still be problems there, but that it's bottomed. >> yeah, well, you know what, a grand endorsement like that, i hope he doesn't do product selling on the air. listen, i agree, when you have tops and bottoms, you get some in either camp. what he's really saying, listen, it might not get any worse, but does that mean you will see major improvement anytime soon?

the key to europe is their unemployment issues, same could be said for the states. if you want to fix an economy, central bank tinkering, yeah, maybe that will buy you some time. but creating jobs creates lasting demand. >> rick, it's a great point. a lot of people are saying, you know, even if you think unlt (unintelligible), there's no reason to rush in. it's quite clear who is the beneficiary of the money. scott? >> yeah, semiconductors are on a tear, quarterly sales rising the most in three years. the ceo of the semiconductor industry association tells us what's driving growth and how long it will all last. also ahead, say it ain't so. the yankees' third baseman alex rodriguez battles major league baseball to keep playing after being suspended for the use of performance enhancing drugs. the reaction is coming if fast and furious. we'll be live in chicago tonight. ge. ge. it's a stationery and gifts store.

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$38 last week. analysts at piper jaffray, they raised their price target to $46 from $38. among earnings today, tyson foods rallying. after the meat processor beat expectations. the company also sees 2014 sales above average analysts' forecasts. wheren buffett's berkshire hathaway edging higher, posting second quarter profits that jumped 46%. at least three brokerages lifting their price targets on this one, including barclays and kbw. some names also in the red, though. the cboe. analysts at goldman say the stock looks fairly valued after the latest quarterly report, downgrade that stock to neutral. scott, back to you. >> josh, thank you so much. josh lipton. looking for growth? check out the latest numbers from the semiconductor industry association. chip sales soaring in june up more than 10% in the americas, and if you look globally, sales showing their best quarter-over-quarter increase over the past three years. >> yeah, brian toohey heads the semiconductor conduct association, and he joins us now

exclusi exclusively. brian, great to have you with us. >> thank you so much. appreciate being here. >> a lot of people are looking at this and asking whether this is smartphones, or is that what's driving the surge we've seen in chip sales year on year? >> a lot of things are driving the surge, especially -- and we've had a very good quarter. up globally 6%. 8% in the americas this quarter. it's the best quarter, as you said, in three years. what's been driving this immediately has been memory sales, sales in the memory sector, which actually point to growth in a wide range of consumer end product. but we see growth among a number of our segments. >> so can you elaborate -- i'm sorry, scott. can you elaborate quickly? is this actually a mobile-driven phenomenon? what is it that's behind this increase, then, if you could get specific? >> sure, sure. well, it's a broad range. mobile is certainly part of the equation. but what we've seen is semiconductors going into a large -- a larger array of end products. so from everything from cars to

connected health, we see semiconductor content growing. mobile is certainly a huge part of the story. but it's a much broader story than that. >> so then, we cannot read through these numbers and make any sort of judgment that while some say, let's say, high-end smartphones and other smartphones, that market has peaked, it's dangerous to do that, because you say that even though there's been a tremendous pickup, that it's not necessarily a result of smartphones? >> that's right. i mean, by the way, i think it's very much an open question if smartphone sales have peaked. you had a great debate on that during your "power lunch." >> and i raised the issue, because qualcomm was downgraded today in part for that very reason. >> well, and there was a very good debate over "power lunch" on exactly whether or not that is the case. what we do know for sure is mobile communications is just at its infancy, from connected homes to cars to the internet of things, we see mobile communications growing. and we see that as a very, very

good demand driver for the semiconductor industry. >> where are we, brian, in the semiconductor cycle? because a lot of -- scott's talking about the qualcomm, and there have been a lot of people out there asking whether we've turned. there's been concern on the macro level about the slowdown in cap ex that we're seeing. and people pointing even to this survey saying despite the encouraging year-on-year gains, we're seeing signs we're moving into the later stages of the semiconductor cycle. would you agree with that? >> we see continued growth going forward toward the end of the year as well as growth moving forward in 2014 and 2015. i think in some ways the semiconductor cycle traditional semiconductor cycle is moderated, and given the fact that we're seeing semiconductors in a much wider array of products, the cyclical nature of the industry may be a thing of the past. >> let me ask you quickly, you have a dog in the dell fight? >> no. >> do you care -- what's better for your industry, whether michael dell gets that company or icahn or anybody else for that matter? >> i really couldn't comment on that. we don't have a dog in that

fight. >> you must be thinking about whether, you know, a company like that is relative to, you know, hewlett-packard, made a bredty good -- i don't know full comeback, but as a stock, it's done well, and optimism given what whitman is doing there now. pcs in general. there's not much to say about what's going on at microsoft. people question the pc side of hp. and you do have the dell thing kind of hanging out there. that has real implications for your industry, does it not? >> well, i think getting that resolved and getting certainty is probably the most important perspective from our industry. >> you're just not going to go there, i guess, all right. >> i'm still dwelling on the fact that the semiconductor -- i mean, to call one of the most cyclical industries of all time perhaps moving in a secular direction. that's interesting, brian. >> yeah, well, i see given the broad range of product -- who used to be very much tied to the computer refresh cycle. we don't see that as much anymore. we see a much broader range from, you know, smartphones now to cars to the internet of things, and it's far less tied

to the old cycle. >> yeah, no, it's a great point po for those trying to figure out where we are in the cycle. thank you. trying to figure out what's happening with the chipmakers around the world. a big suspension for a. rod, but he is appealing the ban and the hit on his $275 million contract. coming up, we'll head out to chicago where a. rod is still expected to make his season debut tonight. could ashton kutcher pull off the role about steve jobs? he speaks with maria tomorrow. be sure to tune in for that. also, up next, we'll take you behind the scenes of the jobs film and look at prospects of the no-name filmmaker behind it to recoup his multimillion-dollar investment. "closing bell" returns in two. hs expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪

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welcome back. a texas entrepreneur tries his hand at filmmaking about apple founder steve jobs and lands an all-star cast. julia boorstin has that story. julia? >> reporter: scott, steve johns' biopic called "jobs" will open next friday from independent distributor open road films. the $8.5 million movie, following steve jobs from

college dropout to entrepreneur says, quote, inspired by a true story. it was financed by entrepreneur mark hole many. now, ho home has never produced movie. he founded five star institute -- a five-star institute, which is a publishing and conference company for the mortgage industry. when jobs stepped down, home decided he wanted to tell his story and commissioned a screenplay for one of his company's writers that lured star ashton kutcher by appealing to his admiration for jobs. now, despite an a-list cast, the film's debut has received mediocre reviews prompting delays for edits and marketing. the question is whether hulmes' investment will pay off. >> if everyone owns an ipod or an ipad or apple product goes to see this movie, it will be a huge hit. but that's not necessarily going to happen. . >> reporter: but it helps that kutcher has 14.5 million twitter followers and stars in the tv

hit "two and a half men." this isn't the only film looking to immortalize steve jobs. allen sorkin is working on a film based on a biography, which did what jobs' p s participatio. ashton kutcher speaks with maria here on the "closing bell" tomorrow. it is an exclusive interview. and you do not want to miss a second of it. meanwhile, a perfect storm is brewing between hollywood and wall street. more fallout after acting icon george clooney launched a war of words against dan loeb. loeb, who has a stake in sony, sent a letter to its ceo, several of them, actually, calling the entertainment division poorly managed after two blockbuster flops. this summer, he wants the company to split up, clooney, who has a producing deal with the studio, says loeb knows nothing about the movie-making business and is trying to manipulate sony's stock through fear. >> on that note, two-time oscar

winning producer linda has had to seasons financing for her films and has worked with george clooney. she joins us now. linda, thank you so much for your time. you know, i guess as you've seen this war of words back and forth between clooney and loeb, what strikes you about it? >> well, it strikes me that it's wonderful of george to be so george and taking this on. he is fearless. he is brave. and he knows hollywood as well as anyone in the business. he's obviously a movie star, but moreover, he's a producer, and he's a director. so he has seen the business from every imaginable side, and he knows it as well as anyone. >> so why bite the hand that could possibly, or has already, fed him to some respect? if wall street has in the past, and is still funding movie projects, his or otherwise, why take a shot at a guy like dan loeb?

>> i suppose we in hollywood don't look at wall street investors as the hand that feeds us. we're happy to take investments anywhere. we've all met with russian oligarchs and billionaires and -- >> linda? linda? linda, i'm sorry, i have to break in now. we have breaking news. i apologize. it's regarding the "washington post." and mary thompson has that very interesting story. mary? >> really interesting. jeff bezos, the founder of amazon.com, will be buying the newspaper publishing businesses of the "washington post" for $250 million. now, bezos is buying this with an entity that is his alone. this does not have anything to do with amazon.com. so it's basically a personal acquisition. the transition -- the transaction covers the "washington post," the newspaper, and other publishing businesses, including the express newspaper, the gazette newspapers, southern maryland newspapers, fairfax county

times, greater washington publishing. what it doesn't include is slate magazine, the root.com and foreign policy. they're not part of the transaction, and will remain with the "washington post" company, as will wapo labs and social code businesses. once again, jeff bezos is paying $250 million for the newspaper publishing businesses of the "washington post." he has asked katherine wamuth, the ceo and publisher of the "washington post," as well as the president and general manager, steven hill, to continue in those roles. back to you. >> yeah, mary, interesting. in that in a matter of a couple of days here, we're talking about two of the great publications, one being the "washington post" for sale. and then, of course, the "boston globe" from your backyard being sold for just 70 million. >> $70 million. >> so $250 million sale. the -- >> right. of course, "the new york times" had bought it for $1.1 billion a

number of years ago, so a decline there. you can see "washington post" shares are actually a little bit -- they are moving higher on the news in the after-hours trade. back to you. >> all right, mary, thank you so much. i know we'll continue to follow that story. linda obst is back with us again, and has worked with george clooney in the past, and has had to seek financing for her films. i think the last question i asked you before i unfortunately had to interrupt you is why would george clooney take a shot at a guy like dan loeb. it's not like george clooney is an actor anymore. he's a director, producer and fills so many roles in hollywood where theoretically he's looking to places like wall street to finance some of his projects. >> well, wall street are our investors. they're not our studio heads. they don't pick our pictures. they don't understand our business. they may participate in our business. sometimes they try to become producers, and that's really fun, like the man who's financing ashton kutcher's

picture, for fun. but that doesn't mean they understand our business, that they've been in the business as long as george has or as long as many of us have, to be able to evaluate sony over a period of years. for example, last year, sony was number one in market share. over the past five years, sony has been between one and three, at the most five, in market share out of ten studios. and yet daniel loeb is evaluating sony on the basis of two tentpoles this summer. there's not a studio that doesn't have tent pole problems. for very good reason. tent poles are a very difficult model. and unless you own the marvel catalog or the d.c. catalog, putting together $250 million propositions that have to make their business basically an international territories, and you don't own the "avengers," those are very difficult business proposition to put together, and virtually every

studio has had difficulties, as you've seen this year with disney and "lone ranger" and disney with "john carter," when they don't have the "avengers," disney has a hard time. universal last year with "battleship." the problem is how do you make tent poles. sony has the best track record for making original movies and making them for a price of any other studio. that's the point i made in my book. >> right, linda, we thank you for your time. >> that's why george got so angry. >> right. yeah, well, angry he did. >> i mean, george is a very -- and he had very -- every reason to get angry, because what we look for in the movie business is which of the studio heads that can build tent pole has guts. have the guts to be able to pick original pictures and make them for a price, and then have a combined slate of tent poles and original movies. >> understood. linda, thank you so much. thank you very much. we want to keep people in mind, scott, as well, that having just heard that jeff

bezos has personally bought the "washington post," again, this is not amazon buying the company's assets, that include "the post," not all of the company's assets, just the "washington post," related properties, we'll have more on that story just ahead. >> yeah, stock's up nearly 2% after hours on that news. we're also following yankees' slugger alex rodriguez battling to keep playing this season. and despite major league baseball's suspension over performance enhancing drugs, the site of chicago, about three hours from now. it's coming up when we come back. portunity sales event and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats.

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this is the pursuit of perfection. all right. welcome back. we want to show you shares of the "washington post" after reports just breaking that amazon's jeff bezos is personally buying the "washington post" for $250 million. the newspaper publishing business. there it is, the stock is up nearly -- i was going to say it was up nearly 2% after hours, but that's just doubled. it's up nearly 4% after hours. this is not amazon. this is bezos himself. julia boorstin is with us from out in los angeles. julia, any idea why mr. bezos would have an interest in the "washington post"? >> reporter: well, i think that he must have a personal interest in publishing. obviously, the publishing business is challenged. but we have seen a number of big-name, high net worth individuals take interests in newspapers. now, i want to point out here, just to really clarify, this is bezos himself and not amazon. there have been a lot of tweets

about this. it's really important to clarify, it's bezos, not amazon. it's interesting that allen & company assisted in the process. and jeff bezos was at the conference in sun valley last month, as was don graham, the chairman and ceo of the "washington post" company. it seems like the deal was certainly discussed there, if not, you know, sort of -- if it didn't come about there. it does seem like something that took place in a relationship between don graham and jeff bezos. it's interesting looking at the recent spinoff of the news corp. assets, the publishing assets from the combined news corp. and fox company, now, the publishing assets are considered slower growth, much more challenged, but rupert murdoch has an interest in publishing and jeff bezos must have a personal interest in publishing as well. >> you know, julia, let me also note here that mr. bezos is buying simply the publishing part of this business. >> exactly. >> not the entire company. the "washington post" stock, i

should tell you, as you're looking at this chart, has a market cap of some $4.2 billion. the publishing arm of the "washington post" company is being sold for $250 million. so let's make that -- >> scott, the -- the "washington post" company has increasingly been largely about capland, which is the test prep business. so "washington post" company, though it had that name of the flagship paper, wasn't about the newspaper business anymore. it was largely about caplan, a fast-growing education company. this is really specifically the newspaper publishing part of the business, and the kaplan part of the business will remain part of the publicly traded company, and it says here they are looking to potentially change the name of that new company. >> well, it's clear where investors see the value here. i wonder so much about what's going to happen to the employees and to this paper, as, you know, whether or not this, to some extent, is a vanity project, can it leave someone like bezos bring something to the table and make it work, where others have failed? mary thompson joins us now with

some more information on this. hey, mary. >> yeah, hey, a couple of things. the washington post company will be change its names within 60 days of closing the deal. and also allen & company assisted them with the sale to mr. bezos, so you might expect they were probably talking in sun valley. excuse me if we've had julia talking about that as well. of course, a very famed newspaper with a storied history, the "washington post." and currently, the ceo, katherine waymouth, the granddaughter of the very famous publisher, katharine graham. a note from jeff bezos, here again, i'm not sure we've covered it, but everyone at "the post" and everyone in the family has been proud of this company. we publish, the people who write and produce it. according to donald graham, who is the publisher of "the post, "requesting not jeff bezos. so we'll see a name change. it has a market cap of $4.2 billion, and the publishing

being sold for $250 million. >> we can assume the name will probably stay on the newspaper, mary, even if it comes off the company that remains. >> right. right. and, you know what else is interesting to note, one thing i was thinking of when we were talking, is "newsweek" was recently sold, too. for what, was it, is that news week was recently sold, too, for iac just recently sold it as well. news week used to be sold by "washington post." again, of course as you would expect, the newspaper business keeping that name, you would expect to see that happen again because it would be -- it, again, is synonymous with that. we'll see what mr. bezos has in mind for it. >> i just want to point out the "washington post," the newspaper has been innovative in its use of technology. done graham who has a personal relationship with mark zuckerberg was one of the first people to push the "washington post" and any newspaper to use the facebook tools of liking. "washington post" was key in allowing people to share articles they liked through

facebook. so it's always really tried to push the edges of how people interact with technology through the newspaper. >> yes, still wasn't enough. >> guys, thanks so much. mary, july ya, talk to you soon. yankees star alex rodriguez -- we will get you the latest live from chicago, the site of the planned return in just about three hours from now when we come whack. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers

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>> reportedly in 20 minutes alex rodriguez is expected to meet the media. he was suspended for 211 games beginning thursday for his use of performance enhancing drugs and lying to baseball investigators, putting more than $30 million of his $275 million contract at risk. >> he plans to be on the field in three hours when the yankees place the white sox. that's where we find chris boden. he'll be talking to a-rod in just a bit. what are people saying there? >> we're sitting tight waiting for him to say what he has to say. interesting to find out how much he's going to say. he issued a statement before

arriving here when he was whisked in an a golf cart trying to get in as quickly as possible and avoid the media and the paragraphs outside the clubhouse. he will dispute and is disappointed in this ruling. he and his attorneys are going to appeal and fight until the very end. he has the unions backing as well, saying that the mlb is going to fight vigorously for a-rod in this case. it's a question of how much mlb and bud selig are abusing their powers in terms of finding what some of these abusers are. the 12 others named today took their 50-game suspensions. a-rod is going to appeal. it's the longest suspension for a guy of that magnitude since a guy that was famous around here 100 years ago. joe jury ar dye is going to talk

in about an hour or so, about 5:15 central time. >> i want to read you a tweet, ultimately although today will be a day of unfamiliary for major being baseball it's a tremendous step in the right direction for the game we love. do you agree with that? >> i think it's a step in the right direction for what bud selig is trying to do. what he is able to get away with in the court of law is going to be interesting. the union has to do what it thinks it has to do in terms of supporting these players, doing what they need to do from a union standpoint in protecting them. there is all this wondering about whether evidence and fact finding is what bud selig is trying to do. how much that holds up in court is going to be the big question. >> chris boden, thank you very much for the latest there. we'll be following this all

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worst day since june 28th, only one third of one% lost there. the nasdaq managing to get into positive territory. the s&p negative. total volume, the lightest this year, maybe no surprise given that it's august. >> watching the etf. maybe people are skprezing views about fixed income or turning their views to emerging markets in europe. >> live from the nasdaq trading site in new york city's times square, i'm melissa lee. yes, it is august and it is slow but today is august 5th. today is the day retailers tend to bottom paving the way for a strong month into mid september.